18% of your cell phone bill is taxes

Not only is your income taxed when you get paid, but usually two to three times after that as well. Case in point, your cell phone bill.

In 2015, Americans cell phone bills carried hefty taxes. Taxfoundation.org found that up to 18% of your cell phone is consists of taxes from local, state and federal entities. 

Increases in federal, state, and local fees drove the national average wireless tax and fee burden to its highest level ever – nearly 18 percent of the average U.S. wireless customer’s bill. This is an increase of nearly one percentage point over 2014 levels and is almost two and one half times higher than the general sales tax rate imposed on most other taxable goods and services.

Here’s how the fifty states ranked. Indiana came in at #23

Taxes, Fees, and Government Charges on Wireless Service, July 2015
2015 Wireless State-Local Rate 2015 Federal USF Rate 2015 Combined Federal/State/Local Rate
1 Washington 18.69% 6.46% 25.15%
2 Nebraska 18.53% 6.46% 24.99%
3 New York 17.90% 6.46% 24.36%
4 Illinois 17.46% 6.46% 23.92%
5 Missouri 14.79% 6.46% 21.25%
6 Rhode Island 14.70% 6.46% 21.16%
7 Florida 14.66% 6.46% 21.12%
8 Arkansas 14.31% 6.46% 20.77%
9 Pennsylvania 14.14% 6.46% 20.60%
10 Kansas 13.53% 6.46% 19.99%
11 Puerto Rico 13.45% 6.46% 19.91%
12 South Dakota 13.14% 6.46% 19.60%
13 Utah 12.77% 6.46% 19.23%
14 Alaska 12.69% 6.46% 19.15%
15 Maryland 12.67% 6.46% 19.13%
16 North Dakota 12.27% 6.46% 18.73%
17 Tennessee 11.99% 6.46% 18.45%
18 Arizona 11.98% 6.46% 18.44%
19 DC 11.63% 6.46% 18.09%
20 California 11.60% 6.46% 18.06%
21 Texas 11.53% 6.46% 17.99%
22 New Mexico 11.22% 6.46% 17.68%
23 Indiana 11.06% 6.46% 17.52%
24 Oklahoma 10.88% 6.46% 17.34%
25 Colorado 10.78% 6.46% 17.24%
26 South Carolina 10.58% 6.46% 17.04%
27 Kentucky 10.56% 6.46% 17.02%
28 Alabama 9.75% 6.46% 16.21%
29 Minnesota 9.54% 6.46% 16.00%
30 Georgia 9.22% 6.46% 15.68%
31 Mississippi 9.14% 6.46% 15.60%
32 Massachusetts 8.93% 6.46% 15.39%
33 New Jersey 8.93% 6.46% 15.39%
34 Iowa 8.71% 6.46% 15.17%
35 North Carolina 8.59% 6.46% 15.05%
36 Vermont 8.50% 6.46% 14.96%
37 Ohio 8.42% 6.46% 14.88%
37 Michigan 8.28% 6.46% 14.74%
39 New Hampshire 8.22% 6.46% 14.68%
40 Wyoming 7.95% 6.46% 14.41%
41 Hawaii 7.61% 6.46% 14.07%
42 Connecticut 7.44% 6.46% 13.90%
43 Maine 7.35% 6.46% 13.81%
44 Louisiana 7.29% 6.46% 13.75%
45 Wisconsin 7.17% 6.46% 13.63%
46 Virginia 6.61% 6.46% 13.07%
47 West Virginia 6.43% 6.46% 12.89%
48 Delaware 6.29% 6.46% 12.75%
49 Montana 6.11% 6.46% 12.57%
50 Idaho 2.17% 6.46% 8.63%
51 Nevada 1.95% 6.46% 8.41%
52 Oregon 1.80% 6.46% 8.26%
Weighted Avg. 11.50% 6.46% 17.96%
Simple Avg. 10.42% 6.46% 16.88%
Source:  Methodology from COST, “50-State Study and Report on Telecommunications Taxation,” May 2005.  Updated July 2015 using state statutes, FCC data, and local ordinances.
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s